Australian bioenergy company Delorean Corporation (ASX: DEL) has reached financial close on its A$62.1 million NSW1 Horsley Park Bioenergy Facility in New South Wales, enabling the project to move into procurement ahead of construction planned for the first quarter of 2027.
The company’s board confirmed financial close on 9 November 2026 for the 100%-owned facility, which will be built on land owned by Brickworks Limited, adjacent to its manufacturing operations at Horsley Park. The project will convert source-separated organic waste diverted from landfill into mains-grade biomethane for direct supply to Brickworks’ brick manufacturing plant.
The financial close follows the execution of a A$20 million trade finance facility with Westpac Banking Corporation, confirmation of a new Tanarra financing facility and the activation of A$30.5 million in government grants. The 25-year renewable gas supply agreement and land lease arrangements with Brickworks subsidiaries are also now active.
A$62.1 million project backed by grants and financing
The project’s gross cost of A$62.1 million is expected to be funded through a combination of government grants, debt financing, previously funded project costs, company resources and an equity placement.
The funding structure includes a A$20 million grant from the NSW Government through its Net Zero Manufacturing Initiative and A$10.5 million from the Australian Renewable Energy Agency (ARENA) under its National Industrial Transformation Program. Both grant agreements are now active.
Westpac has executed a A$20 million trade finance facility through Delorean’s subsidiary, Horsley Park Bioenergy Pty Ltd. The facility will fund project equipment costs and carries an interest rate of BBSY plus 2.5%, alongside a line fee of 1% of the facility limit. Delorean intends to refinance it through a longer-term project debt facility when the plant is commissioned.
The funding plan also includes A$1.6 million already applied to project capital costs and A$8.7 million attributed collectively to Tanarra Facility D, research and development tax refunds and future Delorean cash reserves. A further A$1.3 million is included in the project funding table for the November 2026 equity placement.
Separately, Delorean said it had received firm commitments totalling A$1.4 million for a private placement of 20,895,523 shares at A$0.067 each. PAC Partners Securities acted as lead manager and bookrunner. The company expected the new shares to be allotted and commence trading on the ASX on 17 November 2026.
Tanarra facility provides up to A$10 million in additional funding
Delorean has entered into a binding term sheet with Tanarra Restructuring Partners, as manager of the Tanarra Australian Recovery Fund, for a loan facility of up to A$10 million.
The facility is structured as five potential A$2 million tranches, with availability dates running from 31 December 2026 to 31 December 2027. Each tranche has a 90-day availability period, and Delorean is not obliged to draw any of them.
The proposed facility carries cash interest of BBSY plus 8% per annum, subject to a 4% BBSY floor, as well as 5% per annum in capitalising interest. It also includes a quarterly commitment fee of 3.25% on undrawn and unexpired tranches.
The facility remains subject to execution of full legal documentation. Any associated equity options over the NSW1 project company would be issued progressively if the relevant tranches are drawn.
Biomethane to replace part of Brickworks’ natural gas use
NSW1 is designed to process approximately 120,000 tonnes of source-separated organic waste annually, although the facility has approval to process up to 150,000 tonnes per year. Delorean expects it to produce approximately 253,000 gigajoules of renewable gas annually.
The mains-grade biomethane will be piped directly to Brickworks’ Horsley Park manufacturing operations for use in brick production. Under the 25-year gas supply agreement, Brickworks will purchase all renewable gas produced by the project, up to agreed maximum quantities that remain commercially confidential.
Delorean estimates that the renewable gas could reduce natural gas consumption at the brick plant by around 50% and lower the facility’s Scope 1 emissions by approximately 38%.
The associated land lease with Brickworks subsidiary The Austral Brick Co Pty Ltd runs for 25 years and includes a rent-free period during construction. Brickworks will also have the option to purchase Australian Carbon Credit Units (ACCUs) and Renewable Fuel Certificates generated by the project.
Procurement to begin following financial close
With financial close achieved, Delorean Engineering is expected to begin procurement and mobilise for construction. The company has scheduled construction commencement for the first quarter of calendar year 2027. Development approval for the project was granted in July 2025.
Commenting on the milestone, Delorean Managing Director Joe Oliver said: “Reaching Financial Close on NSW1 is a major milestone for Delorean and for Australia’s biomethane industry, following on from Delorean’s 100%-owned SA1 Project now approaching commissioning in Adelaide.”
He added: “With the support of the NSW Government, ARENA, Westpac, Tanarra, Brickworks and of course our shareholders, we can now build and own critical organic waste processing infrastructure on Sydney’s doorstep, delivering renewable gas to Brickworks for decades.”
Oliver said the project would deliver “diverse long term contracted and merchant revenues” as the company continues to develop its project pipeline.
Bioenergy Business Analysis
The financial close moves NSW1 from development and financing into the procurement phase, with its long-term gas offtake arrangement providing a defined industrial customer for the biomethane produced. The project also illustrates how organic waste processing and renewable gas supply can be integrated directly into energy-intensive manufacturing operations.
The A$30.5 million in active government grants represents a substantial share of the project’s A$62.1 million cost. However, the remaining funding structure includes a mix of executed debt financing, company resources, equity proceeds and a Tanarra facility that is not yet fully documented and may be drawn in stages.
